The National Bank of Kenya (NBK) has unveiled a KSh 2 billion new Agri-financing and enablement initiative to support farmer networks and households nationwide.

Dubbed Kilimo Konnect, this investment solution will provide tailored financial services to help farmers overcome challenges related to working capital, equipment procurement, and post-harvest processing.

Additionally, key stakeholders including Private Equity Support, Netherlands Enterprise Agency, Endless Africa, and Grobox Ltd will collaborate with NBK to offer interventions and capacity-building opportunities that promote the adoption of innovative technology-centric agricultural solutions.

Speaking during the launch, NBK Managing Director George Odhiambo emphasized the importance of supporting the agri-business sector, given the challenges farmers face in accessing finance.

“We have collaborated closely with our partners to co-create Kilimo Konnect, a dynamic proposition tailored for farmers. This solution aligns with NBK’s Sustainability agenda to provide Green Financing Solutions for farmers to enable a sustainable future. We are happy to be collaborating with like-minded development partners who share our vision of supporting agri-business through capacity building and funding. Together, we can catalyze the agriculture sector to success and foster economic growth,” he stated.

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As part of the launch, NBK has provided two fully paid-up biodigesters to farmers, a 10% facility discount for the first 10 biodigester loans taken up by cooperative members, covered the cost of Last Expense Insurance for one year for 10 households, and initiated pilot feed advisory services for 10 farmers over three months.

In addition, farmers will have the opportunity to buy and install biodigesters through affordable financing options. These devices enable them to convert organic waste into energy for both household and farm use. This aims to reduce operational costs and promote sustainable farming practices by leveraging renewable energy.

Kilimo Konnect brings together various stakeholders, including dairy cooperatives, fintech companies, and technical advisors, to guide farmers in using biodigesters. These partners will ensure the proposition’s success by promoting the adoption of innovative technologies and practices in agriculture.

Marnix Van Holland, the Senior Advisor of Climate Finance and Energy for the Netherlands Enterprise Agency (RVO) noted, “RVO has developed its “Strengthening the Entrepreneurship Ecosystem for Clean Cooking (SEE-Clean Cooking) approach to bring a variety of stakeholders together to scale local market development. Therefore, under the African Biodigester Programme (ABC), we are excited to witness the involvement of local financial actors in supporting their entrepreneurship ecosystem.

This collaboration is crucial in fostering sustainable growth for biogas companies and demonstrates the potential for long-term engagement that extends beyond the ABC program itself. By integrating financial actors, we believe Kenya is setting the stage for a robust and scalable clean energy future, aligning with broader economic and environmental sustainability goals.”

“Working with NBK to catalyze this wholistic market-based approach that provides access to finance with technical support, represents a way to utilize the biodigester to address smallholder farmer challenges on costs of inputs and energy,” noted Diana Gichaga, Managing Partner Private Equity Support (PES), the Access to Finance leads in Kenya.

“Through the provision of clean energy and access to the organic fertilizer by-product for rural and peri-urban households, NBK is catalyzing climate-smart solutions at a micro-level. This will assist in reducing greenhouse gas (GHG) emissions from the use of firewood, which accounted for 94% of energy extracted from the environment by individual households across Kenya in 2023.”

“Through Kilimo Konnect, we seek to transform the agricultural landscape in Kenya, ensuring that farmers are well-equipped to meet the challenges of modern farming and thrive in a competitive market. This initiative underscores NBK’s commitment to the agricultural sector and its vital role in the nation’s economy,” stated Mr. Odhiambo.

NBK offers unique financial solutions for various market segments and will continue forging strategic partnerships that drive collaborative innovation to meet customers’ needs today.